Friendly fraud is such a problem that it costs the credit card industry $31 billion per year. Friendly fraud and malicious fraud have increased over the last eight months, and many merchants were not prepared to fight it.
One way for companies to reduce chargebacks is to prevent them from ever happening in the first place. Another way is just to fight every dispute that comes your way, regardless of size and amount. That’s because chargebacks count against your dispute ratio, and if you get enough of them, you’ll be placed in your card networks’ monitoring services which means you pay a higher percentage of all your transactions.
Honestly, credit card statements and bank statements can be some of the biggest sources of chargebacks, and can be a real pain for both merchants and banks. When a consumer doesn’t recognize a charge on their bank statement, they immediately call the bank and dispute the charge.